PPB GROUP BERHAD

Report
PRESS AND ANALYST BRIEFING
1H2014 Results
3 September 2014
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
Group Financial Highlights
Review of Major Operations
Key Achievements in 1H2014
Developments in 2H2014
5-Year Financial Performance
Capital Commitments
Dividend Record
Share Price Performance
Prospects for 2014
2
Group
Financial
Highlights
3
Financial Results FOR THE 6 MONTHS ENDED 30 JUNE
2014
(Figures in RM)
1H2014
1H2013
CHANGE
Revenue
1.84 bil
1.58 bil
16%
Operating Expenses
1.71 bil
1.51 bil
13%
Share of Wilmar’s Profit
196 mil
300 mil
35%
PBT
366 mil
455 mil
20%
326 mil
26.20 sen
427 mil
35.08 sen
24%
25%
Profit for the Period
EPS
4
Financial Ratios FOR THE 6 MONTHS ENDED 30 JUNE 2014
EPS
ROE Attributable to
Owners of the Parent
Net Assets Per Share Attributable to
Owners of the Parent
1H2014
1H2013
26.20 sen
35.08 sen
2.0%
2.8%
RM13.04
RM12.51
5
Segmental
InformationFOR
FOR THE 6 MONTHS ENDED 30 JUNE
Segmental
Information
THE 6 MONTHS ENDED 30 JUNE 2014
2013
TOTAL
REVENUE
RM 1.84 bil
61%
Flour & Feed Milling, & Grains Trading
12%
Marketing, Distribution & Manufacturing
of Consumer Products
10%
Film Exhibition & Distribution
3%
Environmental Engineering, Waste
Management & Utilities
3%
Property Investment & Development
11%
Chemicals, Livestock, Investments & Others*
* Chemicals Trading & Manufacturing [3%], Livestock Farming [3%], Bakery [3%], Frozen Food [1%] & Others [1%]
6
Segmental Information FOR THE 6 MONTHS ENDED 30 JUNE 2014
TOTAL
SEGMENT
PROFITS
RM 167mil
52%
Flour & Feed Milling, & Grains Trading
19%
Film Exhibition & Distribution
10%
Property Investment & Development
9%
Marketing, Distribution & Manufacturing
of Consumer Products
1%
Environmental Engineering, Waste
Management & Utilities
9%
Chemicals, Livestock, Investments & Others*
* Livestock Farming [5%] & Investment Income [4%]
7
Review Of
Major
Operations
8
Review of Major Operations
RM Million
1H2013
1H2014
17%
1200
1100
Revenue increased in 1H2014
mainly due to:- Higher sales volume of flour in
Indonesia, Vietnam & Malaysia
- Increased animal feed sales
volume & improved selling prices
in Malaysia
1000
900
800
700
600
500
993 1,162
400
27%
300
200
69
87
100
0
Revenue
FLOUR & FEED MILLING, &
GRAINS TRADING
Segment Profits
Segment profit increased in 1H2014
mainly due to:- Higher sales volume of feed with
improved profit margins
- Higher sales volume of flour
9
Review of Major Operations
RM Million
240
1H2013
1H2014
16%
220
200
Revenue increased in 1H2014 mainly
due to:- Enlarged distributorship of an
agency product since August 2013
- Improved sales from other existing
agency products
180
160
140
120
100
193
224
80
40%
60
40
10.8 15.2
20
0
Revenue
MARKETING, DISTRIBUTION &
MANUFACTURING OF CONSUMER
PRODUCTS
Segment Profits
Segment profit increased in 1H2014
mainly due to:- In line with revenue growth
- Improved sales of agency products
with better margins
10
Review of Major Operations
RM Million
200
1H2013
1H2014
8%
180
160
140
120
100
172
185
80
17%
60
27
40
32
FILM EXHIBITION &
DISTRIBUTION
Revenue increased in 1H2014
mainly due to:- Improved cinema collections from
blockbuster movies
- Higher contribution from
concessions & screen advertising
income
- Additional revenue from new
cinemas opened in 2013
Segment profit in 1H2014 increased
mainly due to increase in revenue.
20
0
Revenue
Segment Profits
11
Review of Major Operations
RM Million
1H2013
1H2014
17%
55
50
45
Revenue increased in 1H2014 due to
more on-going projects.
40
35
30
ENVIRONMENTAL ENGINEERING,
WASTE MANAGEMENT &
UTILITIES
46
53
25
20
66%
15
10
2.9 1.0
5
Segment profit decreased in 1H2014
due to new projects at design
approval stage and yet to contribute
significantly.
In 1H2013, higher profits from
completed projects.
0
Revenue
Segment Profits
12
Review of Major Operations
RM Million
1H2013
1H2014
51%
50
45
Revenue increased in 1H2014 due to:- Revenue recognition upon delivery
of vacant possession of bungalows
in Bukit Segar
- Higher rental rates from renewal of
tenancies
40
35
30
25
20
17%
32
PROPERTY INVESTMENT &
DEVELOPMENT
48
15
10
14
17
5
Segment profit in 1H2014 increased
due to:- Higher progress billings
- Increase in rental income
0
Revenue
Segment Profits
13
Review of Major Operations
RM Million
260
1H2013
1H2014
12%
240
220
Combined segment revenue for 1H2014
increased mainly due to:- Higher revenue by livestock farming
arising from increased sales volume &
higher selling prices of day-old-chicks &
eggs
- Most of the other segments reported
better performance
200
180
160
140
120
219
246
100
80
8%
60
40
16
20
15
0
Revenue
CHEMICALS, LIVESTOCK,
INVESTMENTS & OTHER
OPERATIONS
Segment Profits
Combined segment profit for 1H2014
decreased due to:- There was a one-time gain of RM16
million on disposal of Tradewinds shares
in March 2013
14
Key
Achievements
in 1H2014
15
Key Achievements in 1H2014
FILM EXHIBITION AND DISTRIBUTION
GSC commenced renovations in GSC Mid Valley to increase the
number of screens from 18 to 21.
GSC extended its second Dolby Atmos hall at GSC KL Pavilion
on 12 June 2014.
16
Key Achievements in 1H2014
ENVIRONMENTAL ENGINEERING, WASTE MANAGEMENT
& UTILITIES
Handed over 4 sewage treatment plants under Greater KL scheme.
Secured subcontract for mechanical and electrical works for
Project Air Mentah RAPID in Pengerang, Johor.
Commissioned the Ngoi-ngoi Water Treatment Plant in mid-April
2014, augmenting drinking water supply in Negeri Sembilan by
150,000m3/day
Accumulated construction order book close to RM500 million.
17
Key Achievements in 1H2014
PROPERTY INVESTMENT & DEVELOPMENT
Following the launch of the 14 units of luxury bungalows at
Taman Tanah Aman in Seberang Prai in February 2014, the
project has achieved 50% sales to-date.
Masera Bukit Segar comprising 13 units of luxury bungalows
have been fully sold and 9 units have been handed over to
buyers in March 2014. The project achieved a GDV of RM104
million.
18
Key Achievements in 1H2014
BAKERY
The Bakery Division commenced commercial production of its
new production line of 6,000 loaves-per-hour bread line end-May
2014.
Launch of “Chiffon-in-a-Cup” cake range.
19
Developments
in 2H2014
20
Developments in 2H2014
FLOUR & FEED MILLING AND GRAINS TRADING
In July 2014, Johor Bahru Flour Mill S/B completed the
acquisition of a neighbouring piece of land measuring 2.3
hectares in Pasir Gudang, Johor for expansion of its feed milling
activities.
The construction of a new 500-mt per day flour mill in northern
Vietnam by VFM-Wilmar is expected to be completed by 4Q2014.
21
Developments in 2H2014
FILM EXHIBITION AND DISTRIBUTION
GSC opened its 10-screen cinema at Palm Mall Seremban on
23 July 2014.
GSC will be opening 3 new cinemas in Klang Parade (8 screens),
NU Sentral, KL (11 screens) and Quill City Mall, KL (10 screens)
in 4Q2014.
There are another 9 new cinema projects in the pipeline to be
opened in the next 2 years.
22
Developments in 2H2014
PROPERTY INVESTMENT AND DEVELOPMENT
Southern Marina Development S/B in which PPB has 28%
effective interest is targeting to launch the 1st phase of residential
units in its integrated waterfront development in Puteri Harbour,
Iskandar Malaysia in 4Q2014.
23
5-Year
Financial
Performance
24
5-Year PBT of PPB Group
RM Million
1,200
1,050
366
1,063
917
600
1,057
750
1,129
900
450
300
150
2010
Note :
2011
2012
2013
Jan-Jun 2014 Year
PBT for FY2010 excludes the gain of RM841 million from the disposal of the sugar-related
assets. If the profit is included, the PBT would be RM1.970 billion.
25
Capital
Commitments
26
Capital Commitments AS AT 30 JUNE 2014
(All figures in RM’Million)
2014
As reported previously (6 March 2014)
440
53
493
(151)
342
Additions/ Project Revision
Amount Spent
Balance to be Spent
27
Capital Commitments AS AT 30 JUNE 2014
RM188 mil
RM103 mil
CAPITAL
COMMITMENTS
RM 342 mil
RM20 mil
RM10 mil
RM6 mil
RM6 mil
RM9 mil
Film Exhibition & Distribution
- Opening of 12 new cinemas
- Upgrading of existing cinema equipment
Flour & Feed Milling, & Grains Trading
- 500 mt/day flour mill in Vietnam
- Investment in China associates
- Expansion & upgrading of plant & machinery
Frozen Food Processing
- Processing plant expansion
Bakery
- Acquisition of bakery machinery, support equipment &
sales vans
Marketing, Dist. & Mftg of Consumer Products
- New warehouse & office buildings
- Upgrading of machinery & equipment
Property Investment & Development
- Upgrading of facilities in shopping mall & office building
Others
28
Dividend
Record
29
DividendRecord
Record
Dividend
Dividend
Per Share
Gross Net
Net
Dividend
Paid/payable
Net
Dividend
Yield
Group
Company
(RM Million)
(%)
(%)
(%)
Payout Ratio
Year
(sen)
(sen)
2014
Interim#
7
7
83
0.5
26.7
44.4
2013
25
25
296
1.6
30.1
155.0
2012
20
20
237
1.7
28.1
62.9
2011
23
23
273
1.3
28.5
2010*
88
88
1,043
5.1
27.9
100.0
# The
293.8
interim single tier dividend of 7 sen per share is payable on 26 September 2014.
* Includes Special Dividend of 65 sen per share in 2010.
30
Share Price
Performance
31
Share Price Performance
17.00
FBM KLCI
FBM KLCI (29.08.14)
1,866.11
1,900.00
16.50
1,880.00
16.00
1,860.00
15.50
1,840.00
15.00
1,820.00
14.50
1,800.00
PPB (29.08.14)
14.00
RM14.78
13.50
13.00
12.50
12.00
1,780.00
1,760.00
Jan - Jun 2014
Closing Price (High)
Closing Price (Low)
Closing (30.06.14)
Average Daily Volume
PPB
16.68
14.76
15.14
434,765
1,740.00
FBM KLCI
1,892.33
1,778.83
1,882.71
129,823,712
1,720.00
1,700.00
SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG
2013
2014
FBM KLCI
PPB Shares - Month End Closing Price (RM)
PPB Shares - Month End Closing Price (RM)
Prospects
for
2014
33
Prospects for 2014
PPB Group’s flour and feed milling, consumer products, film
exhibition and bakery businesses are anticipated to benefit from the
robust domestic consumption for the rest of the year. Several
environmental engineering contracts which are scheduled to progress
into the construction stage, coupled with the sales of bungalow units
in Seberang Prai and Cheras will contribute positively to Group
results.
For 2014, the Group’s core businesses are expected to perform well;
whilst its overall consolidated financial results will continue to be
contingent on Wilmar, which expects better performance in the
second half of 2014.
34
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