PPB GROUP BERHAD

Report
PPB GROUP BERHAD
Analyst & Press Briefing
Unaudited 1H09 Results
26 August 2009
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 forward-looking statements, express or implied, contained in this presentation.
1
Agenda
1. Group Financial Highlights
2. Review of Major Operations
3. 5-Year Financial Performance
4. Dividend Record
5. Prospects for 2009
6. Share Information
2
Group
Financial
Highlights
3
Financial Results for the period ended 30 June
2009 (RM)
2008 (RM)
Change
Revenue
1.606 bil
1.651 bil
3%
Operating
Expenses
1.491 bil
1.441 bil
3%
PBT*
713.9 mil
775.1 mil
8%
Profit Attributable
to Shareholders
669.4 mil
716.2 mil
7%
EPS
56.46 sen
60.42 sen
7%
* Includes 6-month share of Wilmar results amounting to RM519 million (2008 : RM473 million).
PPB Group has adopted FRS139 – Financial Instruments : Recognition and Measurement with effect from 1-1-09.
4
Financial Ratios
EPS
ROE Attributable
to Shareholders
Net Assets Per
Share Attributable
to Shareholders
30 June 2009
30 June 2008
56.46 sen
60.42 sen
5.0%
6.3%
30 June 2009
31 Dec 2008
RM11.35
RM10.32
Segmental Information
for the period ended 30 June 2009
Grains Trading,
Flour & Feed
Milling
34.63%
Sugar & Cane
36.38%
Waste
Management &
Utilities
3.59%
Property
1.30%
Total Revenue
RM1.606 billion
Film Exhibition
5.57%
Others*
18.53%
*Others :• Chemicals Trading &
Manufacturing
• Livestock Farming
• Shipping
• Consumer Products
• Packaging
• Others
6
Segmental Information
for the period ended 30 June 2009
Grains Trading,
Flour & Feed
Milling
14.31%
Sugar & Cane
60.15%
Waste
Management &
Utilities
0.42%
Property
6.15%
Total
Operating Profit
RM137 million
Film Exhibition
8.94%
Others
10.03%
*Others :• Chemicals Trading &
Manufacturing
• Livestock Farming
• Shipping
• Consumer Products
• Packaging
• Others
7
Review
Of
Major
Operations
8
Review of Major Operations
SUGAR & CANE OPERATIONS
RM MILLION
Revenue improved by 28.3%.
Overall sales volume increased by
2.4% from 333,230 mt to 341,217 mt
with domestic sales up by 7.1% and
export sales down by 32%.
28.3%
17.6%
Operating Profit is maintained.
9
Review of Major Operations
GRAINS TRADING, FLOUR AND
FEED MILLING
RM MILLION
13.2%
Revenue for 1H09 was affected by :• lower consumption of flour and
feed and competition from
imported cheaper and lower
quality flour.
80.7%
• Finished products ie. flour and
feed prices fell faster than raw
material prices.
As a result, operating profit was
lower at RM19.7 million.
10
Review of Major Operations
ENVIRONMENTAL ENGINEERING,
WASTE MANAGEMENT & UTILITIES
RM MILLION
80
70
16.2%
1H08
1H09
60
50
40
72.2
60.5
30
20
Revenue and operating profit for
1H09 were lower due to near
completion of current projects for
which revenue is yet to be
recognised in the accounts.
42%
10
1
0.58
0
Revenue
Operating
Profit
11
Review of Major Operations
RM MILLION
100
FILM EXHIBITION AND DISTRIBUTION
6.5%
1H08
1H09
90
80
70
60
50
40
30
88.1
Operating profit is maintained.
93.8
0.8%
20
10
Revenue for 1H09 improved due to the
opening of 2 new cinemas, namely, GSC 1
Borneo (June 08) and GSC Dataran
Pahlawan (July 08).
12.4 12.3
0
Revenue Operating
Profit
On 23 June 09, GSC opened its 8-screen
cinema at Tropicana Mall, PJ and will
expanding its current 5-screen cinema at IOI
Mall with an additional 4 screens which will be
ready in September 09.
GSC will be opening a 9-screen cinema at
East Coast Mall in Kuantan by end-2009.
12
Review of Major Operations
RM MILLION
35
30
1H08
1H09
35.6%
Revenue for 1H09 was affected by the
economic slowdown.
25
20
15
34
26.1%
21.9
10
11.5
5
PROPERTY INVESTMENT
AND DEVELOPMENT
Operating profit was derived mainly
from the property development and
property investment divisions.
8.5
0
Revenue
Operating
Profit
13
5-Year
Financial
Performance
14
5-Year PBT of PPB Group
RM Million
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
609
2005
840
2006
763
2007
Year
1,401
2008
714
Jan - June
2009
15
Dividend
Record
16
Dividend Record
Year
Dividend
Net
Net
Per Share
Gross Net
(sen) (sen)
Dividend
Paid/payable
(RM Million)
Dividend
Yield
(%)
Group
(%)
Company
(%)
Payout Ratio
2009
Interim*
5
5
59.275
0.4
8.9
1.1
2008
85
68.88
816.572
7.4
63.5
116.0
2007
30
22.15
262.588
2.0
41.9
63.7
2006
20
14.55
172.490
2.7
30.8
103.6
2005
20
14.40
170.712
3.5
43.3
115.9
*The Board declared an interim single tier dividend of 5 sen per share for the financial year
2009 which is payable on 25 September 2009.
17
Prospects
for
2009
18
Prospects for 2009
Prospects for the second half of 2009 will remain
challenging for the sugar operations due to a strong swing
up in raw sugar prices. The sugar refinery will have to
balance between maintaining reasonable margins and
adequate sugar supply in the domestic market due to
strong demands.
Prices of wheat, fuel and ocean freight will continue to be
key factors affecting the grains, flour and feed milling
operations.
If the H1N1 is controlled, the cinema operations
should be able to maintain its operations.
19
Prospects for 2009
The Property division will continue explore new land bank
at strategic locations and will continue to review and
strategise to ensure business growth and profitability.
The global economic slowdown will continue to affect
PPB Group’s performance for the rest of 2009 in respect
of lower demand and margins for goods and services
offered by the Group. Overall, PPB Group’s operations
are expected to perform satisfactorily.
20
Share
Information
21
Share Performance
PPB
15.50
FTSE Bursa KLCI
PPB (24.08.09) →RM15.34
1,450.00
13.50
1,350.00
12.50
1,250.00
11.50
PPB →RM11.60
10.50
1,150.00
1,050.00
9.50
FTSE Bursa
KLCI →1,075.24
8.50
7.50
950.00
850.00
Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug
2008
2009
FTSE Bursa KLCI
PPB Share Price (RM)
14.50
1,550.00
Questions
&
Answers
23

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